May 29, 2018
Strategic renewal is challenging. Some organisational theories say that radical renewal is needed during technological or cultural disruptions. Behavioral theories say that some people can lead and implement incremental change only, and totally other type of persons carry out the radical change. Strategy theories try to explain whether some renewal is radical or incremental, strategic or opportunistic. What is the point? Have you considered the fundamental thing behind “renewal”? It is change, mostly radical and massive.
Within DIMECC Ltd. we have carried out radical and massive change during last five years. The number of personnel about five years ago was about the same as now. However, only four out of our 11 employees worked for our company five years ago. During the last five years, our turnover has not changed too much, it has been about two million euros annually. However, about five years ago, 80-90 per cent of our turnover came from research program management. Nowadays, only 20 per cent of our turnover comes from this service. Eighty percent of DIMECC’s turnover in 2018 comes from services that did not exist in 2013! In between, we merged two independent limited companies to form the DIMECC Ltd. that we know now. This year, we bought minority of the shares of Demola Global Ltd. We made a strategic investment and entered a new co-creation business area with an acquisition. We rely on the ones, who have shown best renewal performance in their field of expertise.
How would you call this kind of change? I call it strategic renewal. No matter what all the different theories say about it, we executed and implemented it. When it comes to the Future, no one can predict it. However, by strategically renewing our business all the time, we expect to guarantee the impact, effectiveness and efficiency of our activities and operations in the co-creation business. The world is not ready yet. We have plenty of work to do in streamlining and focusing our activities. We do not feel, that we have changed enough. In contrast, we see potential improvement everywhere we look. It is our mission to be better tomorrow than today.
Strategic renewal – what is behind the rhetoric? Sometimes rhetoric about renewal takes place only because there are no actions. No strategy is better than the implementation. We in DIMECC perform actions for the primary reason of our existence – making strategic renewal of our customers to happen. The real multiplying platform impact of our company comes from the way how the renewal of all organisations that work within the context of DIMECC is boosted. In the modern ecosystem economy, radicality can be designed into the intense use of co-creation methods. We enjoy speeding up the change every day!
Dr. Harri Kulmala
CEO, DIMECC Ltd.